CHICAGO - Fitch Ratings has withdrawn its D ratings on Detroit's pension certificates and its general obligation bonds.
The ratings agency said it withdrew the ratings "due to the bankruptcy of the rated entity and default of the rated issues."
Fitch analyst Amy Laskey said the agency traditionally withdraws its ratings after an issuer has defaulted on debt payments or is in bankruptcy. The firm waited a bit longer than usual this time because of the strong interest in Detroit, said Laskey.
"It generally happens within a fairly short period but we didn't withdraw this one right away," she said. "We kept this one because we knew there would be market interest, and we're going to follow what happens with tax-supported debt, but once the bonds are defaulted, nothing is going to happen with that rating."
Detroit, which filed for bankruptcy last July, has not made payments on its pension certificates or GOs since.
Laskey said the firm will continue to monitor the city's Chapter 9 case and provide market commentary.
Fitch still rates the city's water and sewer bonds, which total roughly $5.3 billion, as well as the Downtown Development Authority tax increment financing bonds.
